EU GRANTS IN TOURISM & NATIONAL INVESTMENT INCENTIVES

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1 EU GRANTS IN TOURISM & NATIONAL INVESTMENT INCENTIVES KroatienTAG 2014

2 Contets Section Chapter Page 1 About 1 2 Planned calls for proposals 4 3 Project activities - EU grants & national investment incentives 9

3 About 1

4 Section 1 About is a global leader in professional services globally (1) provides consulting, audit and tax services with the aim of increasing the value of our clients. Revenue: 34 bn. US$(2) We provide a variety of business and financial services to leading global, national and local companies and public institutions. Number of employees: (2) Presence: 157 countries Number of offices: 776 Note: (1) according to the latest available data (2) Including $1 bn revenue and 3,000 employees from the latest acquisitions of Booz & Company 2

5 Section 1 About Croatia and EU Services Croatia employs more than 150 professionals who are focused on providing innovative advice and solutions for the specific needs of its clients. s client base includes some of the largest Croatian and multinational companies. The close interaction with economic and government bodies allows to keep up with the fast changing environment in which businesses have to work in Croatia 's EU services team consists of experienced professionals with expertise in the field of grants from EU funds. The team members are specialists in the field of investment promotion, including: grants co-financed from EU ESIF funds, as well as domestic sources, various tax and cash incentives, financing, etc. constantly monitors current developments in the field of state aid at the European and national level. also has extensive experience in managing projects and applications for financial grants is key adviser to the European Commission and its bodies, the European Investment Bank and the European Investment Fund, the European Parliament, the European Council and many other EU institutions, as well as the member states themselves has been deeply involved in assisting entrepreneurs, institutions and local authorities in the process of applying for grants and incentives. In many cases s assistance resulted in awarded grants and incentives for new investments and education and created new workplaces 3

6 Planned calls for proposals 4

7 Section 2 Planned calls for proposals Priority axis 3. Business Competitiveness (1/2) Investment Priority Specific objective Actions to be supported Supporting the capacity of SMEs to grow in regional, national and international markets, and to engage in innovation processes Improvement of SMEs performance and growth Support for investments in new, innovative and sustainable tourism products and services and extension of existing ones contributing to raising quality and development of tourist destinations, in particular the underdeveloped ones, taking into account destination-based approach and introduction of non-technological solutions intended for increasing the effectiveness of production and service provision activities (including industrial design and other creative industry solutions), including those leading to reduction of an adverse impact on the environment, indispensable specialized trainings and advisory for staff Support to enterprises meeting norms and standards and receiving certification of products/services/processes in order to increase competitiveness and access to international markets. Assistance to the introduction of quality, environmental, process-management and other control and management systems, certificates and standards including carrying out a conformity assessment ICT solutions Beneficiaries SMEs 5

8 Section 2 Planned calls for proposals Priority axis 3. Business Competitiveness (2/2) Investment Priority Specific Supporting the capacity of SMEs to grow in regional, national and international markets, and to engage in innovation processes Improvement of SMEs performance and growth objective Actions to be supported Beneficiaries Support to the promotion and presentation of Croatia and its regions as a year-round attractive tourist destination by implementation of new tourist products and offer -inter alia, promotion campaigns of tourist products, organization of promotion events, study visits, on-line campaigns, etc., research into tourist traffic (providing access to up-to-date information on tourist traffic to entities operating in the tourism sector and to improve the quality of tourist traffic research in the regions) SMEs willing to start or expand their activities on foreign markets, innovative clusters, the MEC in cooperation the regional authorities and BSOs (such as entrepreneurial associations, Chamber of Economy, Chamber of Crafts, Croatian Association of Cooperatives, HAMAGBICRO) involved in internationalization 6

9 Section 2 Planned calls for proposals Priority axis 4. Promoting Energy Efficiency and Renewable Energy Sources Investment 4.2. Promoting energy efficiency and renewable energy use in enterprises Priority Specific Increasing energy efficiency and use of RES in private service sector (tourism, and trade) objective Actions to be supported Development of infrastructure for renewable energy sources in manufacturing industries and service sector (tourism and trade) including switch from conventional to alternative (RES) energy such as: installation of solar collectors, heath pumps, high efficient co-generation Implementation of measures for increasing energy efficiency in manufacturing industries and service sector (tourism and trade) including: 1. " soft measures - introduction of systematic energy management, performance of energy audits, control of analyses of energy consumption, preparation of plans for more efficient management of energy, institutional and organizational assessment and proposal for optimizing business processes in terms of energy savings, 2. Infrastructure investments such as smart metering and physical refurbishment of objects that will contribute to achieving energy efficiency targets, improvement of the currently used technologies, implementation of pilot projects. 3. Promotional activities (info pults, brochures, commercials, spots) and advisory services for business Beneficiaries Having in mind that SMEs are receiving funding primarily from the Priority axis 3 the demarcation of the possible (energy related) activities between PA3 and PA4 will be ensured as follows: in the cases where energy related measures are part of the integral modernization of manufacturing technologies, equipment and machinery (for example purchase of new production lines) those measures will be financed from PA3. In the case of projects encompassing only the energy measures in the SME (either energy efficiency ones or RES) then the financing will be done through the PA4. Energy efficiency measures that are dedicated to the renovation of industry / service buildings as such (e.g. management buildings or production hall) will be financed from the PA Enterprises (SMEs and large enterprises) 7

10 Section 2 Planned calls for proposals Priority axis 6. Environmental Protection and Sustainability of Resources Investment 6.3. Conserving, protecting, promoting and developing natural and cultural heritage Priority Specific objective Actions to be supported Enhancing protection and management of cultural heritage for development of tourism and other economic activities Renovation and reconstruction of cultural heritage sites (archaeological sites, industrial heritage, fortifications, castes, minor houses, palaces, ethnologic heritage) and construction of related infrastructure as well as improvement of services provided in the cultural heritage sites and creation of new services which will contribute to integrated tourism development Improvement of cultural heritage management by developing management plans, conservation analyses and guidelines for identified culture heritage sites. Rising of public awareness by education about cultural heritage, and its promotion in order to increase the visibility of the sites Promotion and marketing of the cultural heritage sites for tourism purposes are also included. Project preparation activities Beneficiaries Governmental bodies and institutions, regional and local authorities, owners of cultural heritage, local population, related to SMEs in tourism 8

11 Project activities - EU grants & national investment incentives 9

12 Section 3 Project activities - EU grants & national investment incentives Project for EU funds Project phase Main activities A. Analysis of the possibility for obtaining a grant from EU funds for the planned investment 1. Analysis of available EU funds aid sources in the view of the Company s investment 2. Identification of potential EU funds cofinancing on domestic level that could foster the Company s investment 3. Assessment of the compatibility of the Company s planned investment with the priorities and requirements of the available EU funds programmes together with the possibility of meeting them 4. Recommendation on the concept of the investment to increase the chances to obtain the support 5. Estimate of the potential value of support available for the planned investment in accordance with available information 6. Liaising with relevant authorities for consultation purposes 7. Liaising with and assisting the Company with commercial and/or public banks for the necessary bank guarantee as well as for co-financing the potential financial gap between 1) the expected grant and the Company s own equity and 2) the project investment value Approximate duration * 1 month B. Assistance in application for EU grant Preparation of the complete application form for the grant as described below, compatible with all formal requirements of the relevant call for proposal, on the basis of information and documents provided to us by the Company; our assistance will aim at increasing the content-related value of the application and consequently the Company s chances for obtaining the grant. Preparation of the feasibility study for the Company s investment (the key enclosure for the application). Detailed inputs for the feasibility study need to be prepared by the Company Assistance in the preparation of the business plan on the basis of data provided by the Company Verification of all enclosures prepared by the Company in the view of their compatibility with the formal requirements Supervision over the compatibility of the Planned project with the guidelines and goals of the call for proposal Regular consultations with the implementing authority and Company s representative designated to supervise the project Liaising with the implementing authority on doubts raised during the preparation of the application for the call of proposal 2 months C. Assistance in the implementation process Workshop on project settlement requirements and processes Preparation of applications for payment Assistance in Project s update if necessary Day-to-day support including assistance with implementation authority s audit *Deadlines and duration will depend on the date of the call of proposal and the degree of readiness of the project. Certain items from Phase 1 and 2 will overlap depending on the degree of readiness of the project. Depending on the duration of implementation 10

13 Section 3 Project activities - EU grants & national investment incentives Project for national investment incentives Project phase Main activities D. Assistance in applying the investment project for incentives according to the Act on Investment Promotion E. Support during the period of usage of incentives under the Act on investment promotion 1. Analysis of the size of the Company in accordance with Annex I of Commission Regulation (EU) N 651/2014 of 17 June 2014 (the definition of SME) 2. Identification of potential incentives according to the Act on Investment Promotion, which could stimulate investment of the Company (activities with high added value services - activities of tourism services) 3. Recommendation of concepts and if possible the dynamics of investment in order to increase the chances of obtaining grants and optimal incentives for the Company 4. Evaluation of the potential value of the aid that is available for the planned investment, according to the available information 5. Liaising with the relevant authorities and agencies for consultation purposes on use of incentives for the Company (Ministry of Entrepreneurship and Crafts or Ministry of Economy ( Ministry ), AIK Invest ) 6. Analysis of documents and information that we receive from the Company 7. Analysis of the eligible investment costs 8. Optimization and calculation of the usage of incentive categories according to dynamics of payment / use, depending on what is best for the Company 9. Meeting with the Ministry for the purpose of notification and presentation of investment 10.Support in the preparation of entire documentation for the project application for incentives on investments, according to the Act on Investment Promotion and Improvement of the Investment Environment (Official Gazette 111/12, 28/13) and the Regulation on Investment Promotion and Improvement of Investment environment (Official Gazette 40/13) 11. Calculation of the base and the maximum intensity of incentives for investment, taking into account the potential financing of the planned project using preferential interest rates of HBOR 12.Monitoring the process of approving the application in the Ministry and for that purpose the necessary meetings with the Ministry, and possible modifications / additions to application at the request of the Ministry 1 month After approval of incentives, it is necessary to prepare additional documentation that justifies and allows the use of incentives. This primarily refers to the annual reports that are submitted to the Ministry and the Ministry of Finance - Tax Administration, and the documentation proving the creation of new jobs and training related to the workplace. Approximate duration 11

14 Section 3 Project activities - EU grants & national investment incentives Thank you for your attention! Marin Hrešić Country EU Services Leader PricewaterhouseCoopers Savjetovanje d.o.o. All rights reserved. EU2014 GRANTS IN TOURISM & NATIONAL INVESTMENT INCENTIVES KroatienTAG 2014 refers to the Croatian member of the network, and sometimes refersto network. Each member firm within the network is a separate legal entity. For more information visit 12

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